Emerging Markets and developing countries are facing growing fiscal vulnerabilities. A new database covering 200 countries and 28 indicators over 3 decades shows that debt, deficits, and other measures of fiscal health are deteriorating, putting these economies in a vulnerable position if a global economic shock emerges. Now is the time for them to prepare—before the next downturn:
Narrowed Fiscal Buffers: A Vulnerability in Emerging and Developing Economies
The global financial crisis sent shockwaves around the world, forcing many Emerging Markets to tap into hard-won fiscal space to stimulate their economies. Today, that fiscal has been depleted, leaving these economies vulnerable should another shock materialize.
